Mortgages

When you have chosen the right mortgage for you, whether it be a repayment
mortgage where the amount you have borrowed, together with the interest is paid
progressively over the term of the loan. Or Interest only mortgages where you pay
only the interest on the loan during its term, and the total amount borrowed is
repaid at the end of the term using some form of repayment vehicle such as an ISA,
Pension or Endowment.
Once you have chosen what basis you are going to use to repay your loan you still
need to choose which type of mortgage would best suit your needs.
Fixed Rate is where there is a set interest rate for a fixed period of time, and then at
the end of the term the normal variable rate is paid. An arrangement fee is usually
payable when taking out this type of mortgage.
With Fixed rate there may be early repayment charge (ERC) however many providers
now offer fixed-rate mortgages where there is no penalty for paying off or changing
the mortgage once the fixed rate period ceases.
It should be remembered that should interest rates fall then you could end up paying
a higher rate than the standard variable rate.
A fixed rate may be chosen if you expect interest rates to rise generally, and enable
you to plan your budgeting.

Insurance.

The most common reason for investing in life assurance will be
to cover a mortgage but it is also part of the review we
undertake perhaps after getting married or, more likely, when
we have children.
For a single person with no dependents, life assurance may not
be necessary. If you have debts and no savings, then a small
amount might be necessary to pay expenses and prevent
someone else being landed with those debts. There is also an
argument that you should cover a mortgage but in this case, if
you are happy to pass the property back to the bank, or if your
beneficiaries are more than able to cover two or three mortgage
payments whilst the house is sold, then there is probably no
need for it.
If you have dependents, however, you need to look at the
consequences for them if your income were removed. How
much do you earn? Do you have debts? How much is your
mortgage or rent? Do you pay school fees? How long before
your children will be working? Does your partner work? Could
they continue to do so without your support? Even if you don't
work, there can be a considerable cost involved in replacing
what you do to look after children and/or the house.

Set out above is just a small fraction of the financial services we can offer.....for further more in depth information, please visit our website, or call on 01273 730001.